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10 Lesser-Known Insurance Discounts That Can Save You Big

Insurance is a necessary expense for many individuals and families. Whether it’s auto insurance, home insurance, or health insurance, the cost can quickly add up. However, there are often lesser-known discounts available that can help save you big on your insurance premiums. By taking advantage of these discounts, you can significantly reduce your insurance costs without sacrificing coverage. In this article, we will explore 10 lesser-known insurance discounts that can save you big.

1. Bundling Discounts

One of the most common and well-known insurance discounts is the bundling discount. Many insurance companies offer discounts to customers who purchase multiple policies from them. For example, if you have both auto insurance and home insurance with the same company, you may be eligible for a discount on both policies. Bundling your insurance can save you up to 25% on your premiums.

Research conducted by the Insurance Information Institute found that bundling auto and home insurance policies can save policyholders an average of 16% on their premiums. This can amount to hundreds of dollars in savings each year. Additionally, bundling your insurance policies can make managing your coverage more convenient, as you only have to deal with one insurance company for all your needs.

2. Good student discounts

If you have a student in your household who maintains good grades, you may be eligible for a good student discount on your auto insurance. Many insurance companies offer this discount to students who maintain a certain grade point average (GPA) or are on the honor roll. The rationale behind this discount is that students who perform well academically are less likely to engage in risky behavior on the road.

According to a study conducted by the Insurance Institute for Highway Safety, students with good grades are less likely to be involved in accidents. As a result, insurance companies reward these students with lower premiums. The exact requirements for a good student discount vary by insurance company, but typically a GPA of 3.0 or higher is required.

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3. Low Mileage Discounts

If you don’t drive your car often or have a short commute to work, you may be eligible for a low mileage discount on your auto insurance. Insurance companies consider drivers who drive less to be less of a risk, as they are less likely to be involved in accidents. As a result, they offer discounts to these drivers.

According to a study conducted by the Federal Highway Administration, the average American driver travels around 13,500 miles per year. However, if you drive significantly less than this, you may be eligible for a low mileage discount. The exact mileage threshold for this discount varies by insurance company, but typically it is around 7,500 miles per year.

4. Occupational Discounts

Some insurance companies offer discounts to individuals who work in certain occupations. These occupational discounts are based on the assumption that individuals in certain professions are less likely to file insurance claims. For example, teachers, nurses, and firefighters may be eligible for occupational discounts on their auto or home insurance.

According to a study conducted by the Insurance Research Council, individuals in certain occupations have lower claim rates than others. Insurance companies use this data to determine which occupations are eligible for discounts. If you work in one of these occupations, it’s worth checking with your insurance company to see if you qualify for an occupational discount.

5. home security Discounts

If you have a home security system installed in your house, you may be eligible for a home security discount on your home insurance. Insurance companies offer these discounts because homes with security systems are less likely to be burglarized or vandalized. As a result, they are considered less risky to insure.

According to a study conducted by the Electronic Security Association, homes without security systems are 300% more likely to be burglarized. This statistic highlights the importance of having a home security system in place. By installing a security system, you not only protect your home and belongings but also save money on your insurance premiums.

6. Safe Driver Discounts

Insurance companies reward safe drivers with lower premiums through safe driver discounts. These discounts are typically offered to drivers who have a clean driving record and have not been involved in any accidents or received any traffic violations in a certain period of time.

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According to a study conducted by the National Highway Traffic Safety Administration, safe driving habits significantly reduce the risk of accidents. Insurance companies use this data to determine which drivers are eligible for safe driver discounts. By practicing safe driving habits, such as obeying traffic laws and avoiding distractions while driving, you can not only reduce your risk of accidents but also save money on your insurance premiums.

7. Retiree Discounts

Many insurance companies offer discounts to retirees. This is because retirees typically spend less time on the road and are considered less risky to insure. Retiree discounts are available for both auto and home insurance policies.

According to a study conducted by the Insurance Institute for Highway Safety, older drivers have lower accident rates than younger drivers. This is due to a variety of factors, including more driving experience and a decreased likelihood of engaging in risky behavior. If you are a retiree, it’s worth checking with your insurance company to see if you qualify for a retiree discount.

8. Membership Discounts

Some insurance companies offer discounts to members of certain organizations or groups. These membership discounts are often available to members of professional associations, alumni associations, or other similar groups. Insurance companies offer these discounts because they believe that individuals who belong to these groups are less likely to file insurance claims.

According to a study conducted by the Insurance Information Institute, individuals who belong to professional associations have lower claim rates than those who do not. Insurance companies use this data to determine which groups are eligible for membership discounts. If you are a member of a professional association or other group, it’s worth checking with your insurance company to see if you qualify for a membership discount.

9. Green Vehicle Discounts

If you drive an environmentally friendly vehicle, such as a hybrid or electric car, you may be eligible for a green vehicle discount on your auto insurance. Insurance companies offer these discounts because green vehicles are considered less risky to insure.

According to a study conducted by the Insurance Institute for Highway Safety, hybrid and electric vehicles have lower accident rates than traditional gasoline-powered vehicles. This is due to a variety of factors, including their advanced safety features and the fact that they are often driven by more cautious drivers. If you drive a green vehicle, it’s worth checking with your insurance company to see if you qualify for a green vehicle discount.

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10. Loyalty Discounts

Many insurance companies offer loyalty discounts to customers who have been with them for a certain period of time. These discounts are a way for insurance companies to reward customer loyalty and encourage policyholders to stay with them.

According to a study conducted by J.D. Power, insurance companies that offer loyalty discounts have higher customer satisfaction ratings. This is because policyholders feel valued and appreciated by their insurance company. If you have been with your insurance company for a long time, it’s worth checking to see if you qualify for a loyalty discount.

Summary

Insurance discounts are a great way to save money on your premiums without sacrificing coverage. By taking advantage of lesser-known discounts, such as bundling discounts, good student discounts, and low mileage discounts, you can significantly reduce your insurance costs. Additionally, discounts based on factors such as occupation, home security, and safe driving habits can also lead to substantial savings. Finally, membership discounts, green vehicle discounts, and loyalty discounts are other options to explore. Remember to check with your insurance company to see which discounts you may be eligible for. By doing so, you can save big on your insurance premiums and have peace of mind knowing that you are adequately protected.

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